Friday, May 20, 2011

Average household would consume 600 GB monthly on Internet-delivered HDTV

I hate the term "Over-the-Top" used in this headline. It implies that there is some kind of wall to climb over in order to gain access to consumers' TV sets. In fact, cable operators have embraced Internet TV and continue to build more and more capacity in their broadband networks to accommodate all kinds of programming alternatives.

But there is a price to pay.

A recent report on Internet video from Morgan Stanley evaluated the issue by looking at the average HD video currently viewed by American households and the Internet usage that would result from that same amount of HDTV being viewed over-the-top.

The results - the average household usage would increase more than 15 times the current average broadband consumption to 600 gigabytes (GB) per month. A transition for the heaviest HDTV viewers to Internet TV (as opposed to simply the current household average) would result in an average consumption of 1.4 terabytes each month. That's a significant amount of data transfer for a single household.

This total is well beyond the usage caps that some providers have implemented. AT&T, for instance, only allows for 150GB over DSL and 250GB over U-verse.

Todd Spangler puts it well. Trying to deliver this much usage over the broadband networks currently in place is like sending 18 lanes of traffic down a four-lane highway.

So, let's face it. If this is the way people want to consume television, someone has to pay to widen the road. Don't get me wrong -- I totally understand the attraction of Internet TV as it gives access to virtually unlimited choices of programs. I use it all the time. But the question continues to be, should everyone pay for it or should the cost of the necessary additional resources be allocated to those who are using them? If everyone pays, the cost would be spread out over all broadband consumers. But is that fair to light users? If heavy users pay for their disproportionate usage, the same cost would be borne by fewer people who are consuming heavily.

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What if the ISP (Cableone) does not offer to let you pay for more bandwidth? I'd be happy to pay extra as long as it was reasonable. When I've requested to do so I'm told no, you have the most we provide.(100GB month) So tell me, how does the end user pay for more usage beyond the despicable .50 per GB overage.?
Any internet provider should have tiers of service you can purchase at a set rate.

"Bandwidth on the other hand, is paid for at
least twice and sometimes many times over."

And don't forget advertising. Almost all non-premium Internet-sourced material contains advertising either in the more traditional sense of in-line ads (which unlike DVR'd material is difficult or impossible to skip - think Hulu) or more browser-like pop-over/balloon ads (think UStream).

While this kind of advertising pays more directly for things like storage, hosting and delivery (and profits) rather than point-of-delivery method/"bandwidth", it probably wouldn't take much to alter the model to help pay for infrastructure and bandwidth improvements.

Care to comment on this Mike? Maybe making an 18 lane highway isn't as difficult as you make it out to be... or as expensive. Even though I've never had any problems with Insight Mike, it's articles like the one above that make me very suspicious.

A lot of industry people are saying that the internet should be like electricity for the end used (you pay for what you use), but I am in disagreement.
The only profits from a utility like electricity comes from what the end user pays. Bandwidth on the other hand, is paid for at least twice and sometimes many times over.
Take Youtube for example. Google pays for the bandwidth to upload the video to you and you pay for the bandwidth to download it, effectively paying for the same bandwidth twice.
Somebody is making a buttload of money.
I think it would be fairer to look at the internet like a public highway.
You charge commercial users a higher fee (truck drivers) but for the end user it should be one fee for unlimited usage.
It is after all, the increasing bandwidth that is driving innovation on the web. Restrict that and you restrict progress.

Couple of things Mike, I clicked on the link and it was very non-informative. Do you have the study the story refers to? They use some very basic and broad statements... stating the average household watches 8 hours a day and that a 100% internet connected viewing system would equal the 600gb a month. Okay, that's nice... I really hope they're not counting over-the-air channels also. Network ABC, CBS, FOX, NBC, The CW, etc. accounts for a ton of viewing why is it fair to count that towards internet usage? If I cut the cord and have a cap, be rest assured I will be watching The Office via over the air digital NBC (Or via a recording on a media center pc with PVR) and NOT on a service like Hulu or NBC.com. See what I'm saying? Over the air programming should not be included in this study at all and I wonder if it was.

Also, you're talking about fees and who should pay to build up this infrastructure... haven't I seen blog entries somewhere ;) about the govt. taking funds originally earmarked for telephone line expansion and transitioning it to cable expansion... only to have those funds abused by cable companies and used in places with access to cable all ready? Seems like the government is all ready subsidizing it. Would you welcome more subsidization (and the govt. oversight that comes with it) or would you prefer no govt. money but higher bills for your customers? Food for thought.